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2022 Q4 Review and Outlook – Closing out a Tumultuous Year.
Financial markets finished a rough year on a strong note as stocks (as measured by the S&P 500 SPDR ETF – SPY) gained 7.6% in the fourth quarter. The U.S. bond market (as measured by the US Aggregate Bond ETF – AGG) returned 1.6%, and a 60% stock/40% bond portfolio returned 5.2%. For the year, stocks declined…
2022 Q2 Review and Outlook – Welcome to the Bear Market
Financial markets continued their downward trend in the second quarter as stocks (as measured by the S&P 500 SPDR ETF – SPY) lost 16.1%. The U.S. bond market (as measured by the US Aggregate Bond ETF – AGG) fared a bit better, posting a -4.6% total return, and a 60% stock/40% bond portfolio lost 11.5%. …
Your Asset Allocation Depends On Your Financial Plan (and not the other way around)
~ Douglas R. Mewhirter, CFA, Vice President – Portfolio Manager One of the most common questions an investor will ask an advisor is “how much of my money should I have in stocks vs. bonds?” From an investing point of view, that is one of the most important questions you need to ask. Stocks have earned the highest…
Ask a Trust Officer: Cryptocurrency Taxes
Dear Trust Officer: Last year I bought ten Ethereum coins for $2,000 each. I was planning to trade them for an NFT (a non-fungible token), an art investment that has become popular lately. My coins are now worth about $3,500 each, and I’ve found the NFT that I want. Do I have to worry about…
2022 Q1 Review and Outlook – Stocks and Bonds and Yield Curves, Oh My!
2022 got off to a rocky start as stocks (as measured by the S&P 500 SPDR ETF – SPY) lost 4.6% in the first quarter. Surprisingly (or perhaps not surprisingly) the U.S. bond market (as measured by the US Aggregate Bond ETF – AGG) was down 5.9%, and a 60% stock/40% bond portfolio lost 5.1%. Over…
Ask a Trust Officer: Crisis Investing
DEAR TRUST OFFICER: What portfolio management steps should I take on account of the new war in Europe? —UNSETTLED INVESTOR DEAR UNSETTLED: First, depending upon what you own, an impact will be made on your portfolio by the actions taken by multinational companies, many of whom already have cut their ties with Russia. So even…
Estate Planning For Cryptocurrency
Digital currencies (or cryptocurrencies) such as bitcoin are not just a fad. They are resources with potentially significant value, which is why the IRS is increasingly focusing enforcement efforts on collecting data in this area. In 2014 the IRS ruled that cryptocurrency is “property” rather than currency. Accordingly, cryptocurrency is subject to capital gains tax…
2021 Q3 Review and Outlook – Inflation, Stagflation or Neither?
The well-stimulated economy continued to power along in the third quarter of 2021, but the S&P 500 SPDR ETF (SPY) barely squeaked out a 0.6% gain. The U.S. bond market (as measured by the US Aggregate Bond ETF – AGG) was flat (-0.01% return), and a 60% stock/40% bond portfolio gained 0.3%. Year to date,…
2021 Q1 Review and Outlook: “I believe that markets will fluctuate.”
The U.S. stock market continued to climb out of and above the hole it dug in 2020, with the S&P 500 SPDR ETF (SPY) gaining 6.4% in the 1st quarter. The U.S. bond market (as measured by the US Aggregate Bond ETF – AGG) declined 3.4%, and a 60% stock/40% bond portfolio gained 2.5%. For…
Ask a Trust Officer: Roth IRA versus Traditional IRA
DEAR TRUST OFFICER: I have $6,000 to put into an IRA before I file my tax return for 2020. Which is better, the traditional IRA or the Roth IRA? — TARDY SAVER DEAR TARDY: There is no simple answer to your question, unfortunately. Do you qualify for the tax deduction for the contribution…